Meesho The E-Commerce Giant: A Complete Case Study

Table of Content

• Introduction to Meesho: Revolutionizing Social E-Commerce
• Founders’ Vision and Growth to Unicorn Status
• Empowering Women and Small Business Owners
• Meesho’s Business Model and Key Features
• Revenue Streams and Unique Selling Points
• Competitive Landscape and Differentiation Strategy
• Conclusion: Meesho’s Future in Social Commerce

Meesho, one of India’s pioneering e-commerce platforms, redefined online retail by empowering the nation’s housewives and small business owners to launch their online stores without any upfront investment or need for nay inventory. This innovation model hasn’t only broke down barriers to entrepreneurship it also unlocked the economic oppurtunities for individuals across the nation, especially for women, by providing a seamless and risk free way to enter the e-commerce space.

On April 5, 2021, Meesho, a Bengaluru-based social commerce platform, joined the prestigious unicorn club, reaching a valuation of US$2.1 billion after rising a significant amount of US$300million. This achievement led by Japan’s SoftBank Group Corp., the funding round also has saw the participation from existing investors like Prosus Ventures, Shunwei Capital, Knollwood Investment, Facebook, and Venture Highway.This achievements marked Meesho as the fifth indian startup in 2021 to reach a unicorn status, underscoring its rapid growth and impact within India’s fastest growing digital economy.

Sanjeev Barnwal and Vidit Aatrey founded Meesho in Bengaluru, India, in December 2015, deriving the name “Meesho” from the Hindi phrase “meri shop,” mening “my shop.” Meesho, the startup’s primary goal was empowering individuals without physical storefronts and supporting the small business owners through promoting their products online. Meesho Founders Recognized the financial barriers many small businesses faced in establishing brick-and-mortal stores, the startup offered a platform that allowed entrepreneurs to launch and grow their online presence with minimal financial risk.

Empowering Entrepreneurship: Meesho’s Role in Social E-Commerce in India

“India is not a wealthy country, and many individuals are struggling to access capital. Meesho has been enabled those who are previously lacked the resourse to launch their own stores to become entrepreneurs for the first time. Apparently, by eliminating the important need for a working capital and the establishment of physical shops, we empower these individuals to start their own businesses with in an ease access.”

They also found that a significant portion of the stores listed on Meesho were operated only by women, who primarily sold their products online rather than through physical storefronts. This trend highlights Meesho’s prime role in empowering female entrepreneurs and providing them with a platform which reach customers without the traditional barriers has associated with retails.

Despite operating for over six years, the name “Meesho” remains unfamiliar to many. Meesho is an India-based social e-commerce platform created to support small businesses and individuals. It enables users to set up their own online stores using popular social media channels like Facebook, Instagram, and WhatsApp, these move makes easier to reach customer and grow their businesses.

While you open the Meesho app it reveals a wide range of high quality products sourced from reliable vendors. You can choose items that you think will intrest your network and encourage them to make a purchase. Share these products with your friends on social media platforms like Facebook, Instagram, Whatsapp, and other social media sites.

The Evolution of Meesho from FashNear to a Leading Reselling Platform

Before Meesho’s launch in 2015, the company was originally named “FashNear.” It started as a shopping app which was featuring curated selections from local fashion boutiques, offering users a unique approach to shop for nearby fashion items.

In pursuit of more practical business models, they adopted a new strategy that allowed any shop owners to join Meesho effortlessly by logging in with their Facebook credentials. Subsequently, this simplified the onboarding process, transferring their data automatically and creating a dedicated business page with minimal effort. Meesho also streamlined an essential tasks like automatic stocking and inventory managment, attracting over 10,000 shops within just six months.

Customers can order up to three products, which are delivered directly to their doorstep. Even if they are not satisfied with any item, however, they can simply return it to the delivery person while keeping the items they wish to retain.

The idea of empowering small company owners to launch their own digital stores replaced FashNear. This new model allows anyone to start an online store simply by logging in with their Facebook credentials. Meesho quickly became the preferred choice for resellers, as the platform managed everything in-house, including inventory, packaging, and shipping.

Navigating Challenges and Embracing Opportunities

Meesho offers a variety selection of products, with a strong emphasis on ethnic wear for women, including sarees, Kurtis and Lehengas. The platform also provides accessories, footwear, bags, and jewelry. For men, Meesho features traditional attires like kurtas and sherwanis, along with westearn clothing options such as jeans, shirts, and T-shirts.

Meesho offers more than just clothing. The platform also features basic cooking accessories, everyday essential products, home décor items, and even electronics, catering to a wide range of customer needs.

One notable feature of Meesho is its focus on locally sourced products, which has significantly supported small businesses and provided income opportunities. However, this approach also bring challenges, including risks of fraudulent activities from unidentified buyers and sellers.

When the Covid-19 pandemic hit, Meesho experienced a downturn, resulting in the difficult decision to lay off aroud 250 employees, an impact more severe than in the previous five years. This downturn had also affected entrepreneurs and resellers, with a marked decrease in product demand. However, as lockdown restrictions lifted, Meesho quickly launched initiatives to support its network, offering small loans to resellers and entrepreneurs to help them restart their businesses.

These efforts paid off, leading to a significant improvement in business performance, achieving growth rates between 25% to 40% compared to prior levels.

Building Brand Trust and Expanding Reach: Meesho’s Strategic Marketing and Community Engagement

Focusing on the fashion sector and targetting a predominantly female audience, Meesho collaborated with various YouTubers and influencers. These influencers has played a key role in establishing Meesho’s reputation in the social commerce space, showcasing its user-friendly app and promoting over 200 products categories to their communities through posts and videos, while receiving modest compensation for their time and effort.

Meesho’s marketing strategy is built on the core principles of the 4Ps of the marketing mix: Price, Product, Promotion, and Place. These elements serve as the foundtion for Meesho’s brand promotion and product positioning, guiding its approach to capturing and egaging in the market

Remarkably, over 70% of Meesho’s orders come from tier 2+ towns, highlighting the platform’s strong adoption in these regions. Even during the pandemic, Meesho expanded its services to more 2,000 new tier 2+ towns, experiencing a significant rise in order share from these areas between June to December 2020.

Meesho generates revenue through several key channels:

1. Commissions: Meesho earns a commission ranging from 10% to 20% on every sale made through its website or app. This is a primary source of income for the platform.
2. Penalties: When a product is returned due to damage or poor quality, Meesho charges a penalty fee on the seller. This move helps maintain product standards while providing an additional revenue stream.
3. Advertisements: Meesho offers sellers the option to boost the visibility of their products through paid advertising on the platform. This allows sellers to stand out among competitors and drives advertising revenue for Meesho.
4. Logistics: Meesho provides comprehensive support for any product packaging and doorstep delivery. By handling logistics, through these moves Meesho saves merchants time and effort while generating income from these services.
5. Float Money: After a product is delivered, Meesho holds the payments for seven to ten days, a practice known as “float money.” Meesho will be able to earn interest and profits on investments and loans made with this funds.

Together, these revenue streams contribute to Meesho’s financial success while supporting its mission of empowering small businesses.

Everyone has the oppurtunity to earn with Meesho. With over 200 product categories available, you can easily curate a personalized selection based on the tastes of your community and share it on social media sites like Facebook, Instagram, and WhatsApp.

You will earn a commission for each sale generated through your efforts, in line with Meesho’s policies. Additionally, You have the flexibility to set your own profit margin to charge for each product separately.

According to Meesho’s policies, you can expect your payment 7 to 10 working days after the order is delivered. For Cash on Delivery (COD) orders, the delivery officer collects payment directly from the consumer. After ten business days, Meesho will credit your payment once they receive the payment from their agents.

How Meesho Stands Out in India’s Competitive eCommerce Landscape”

Meesho faces intense competition from eCommerce giants like Amazon and Flipkart, which have substantial media presence and have enlisted Bollywood celebrities for endorsements. This competitive landscape challenges Meesho to differentiate itself and enhance its visibility in the market.

In addition to competing with Amazon and Flipkart, Meesho also faces rivarly from other market players, including Deal Share, Glow Road, Shop 101, City Mall, Bulbul, Simsim, and Volusion. This diverse competition necessitates that Meesho continously try to innovate and adapt its strategies to maintain its edge in the social commerce space.

In the face of such intense competition, Meesho sets itself apart by emphasizing social commerce to build trust among its users. The foundation of Meesho’s marketing strategy is centred on pursue their dreams, particularly by enabling entrepreneurship with minimal capital investment. This approach not only enhances the user engagement it will also cultivate a supportive community of sellers and buyers.

Conclusion

Intense competition from giants like Amazon and Flipkart, as well as several emerging social commerce platforms, Meesho has maintained its edge through innovation, strategic partnerships, and focusing on community building. By offering comprehensive logistics, flexible revenue options for resellers, and targeted marketing strategies, Meesho not only sustains its own growth but also fosters the success of its sellers.

Moving forward, Meesho’s will focus on expanding into new markets, investing in technology, and supporting small businesses. As it grows, Meesho’s mission to empower everyday entrepreneurs will continue to shape its journey, driving economic inclusion and transforming the future of social commerce in India.